Advance Systems Inc If Advance Systems Uses the Indirect Method to Prepare the 2014

question 125

Multiple Choice

Advance Systems Inc. reported the following information for 2013 and 2014: $\begin{array}{lrr}&2013&2014\\\text { Accounts receivable } & \$ 101,000 & \$ 93,000 \\\text { Prepaid expenses } & 5,000 & 6,000 \\\text { Accounts payable } & 71,000 & 76,000 \\\text { Salaries payable } & 5,000 & 4,000 \\\text { Net income } & & 67,000 \\\text { Loss on sale of equipment } & & 5,000 \\\text { Depreciation expense } & & 11,000\end{array}$ If Advance Systems uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash flows from operating activities for 2014?

• A) $72,000
• B) $78,000
• C) $94,000
• D) $98,000

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Definitions:

Platelets

Small blood cells that play a crucial role in blood clotting and wound repair.

Anti-A Sera

A serum containing antibodies against A antigen, used in blood typing to identify blood group A.

Anti-B Sera

A type of antiserum used in blood typing that contains antibodies targeting the B antigen found on red blood cells.

Rh Factor

A type of protein on the surface of red blood cells that indicates the presence (+) or absence (-) of the Rh antigen, important in determining blood compatibility.